KUALA LUMPUR: IJM Corp Bhd is targeting RM1.6 billion in property sales for the year ending March 21 2018.
In a group interview at Invest Malaysia 2018 here, its chief executive officer and managing director Datuk Soam Heng Choon said this was higher than its total property sales in the preceding financial year, which was RM1.4 billion.
“We are quite confident that we will be able to hit this target given the sales we have already achieved in our first half ended September 30 2017.
“We do see some challenges in making the buyer getting the right financing margin, in the lower end market. That said, we are doing very well with our township sales in Seremban and Cheras,” he added.
Soam said the group’s property division current unbilled sales amounted to RM1.9 billion, also as of September 2017.
He also shared that IJM Corp was in the final stages of joining Maybank Islamic Bhd’s rent to own (RTO) scheme, HouzKEY.
“We are currently in the process of listing one of our property there. I can't reveal which one yet as Maybank Islamic are getting all the approvals but the announcement would be made soon.”
For the pilot launch, Maybank has partnered five prominent property developers namely SP Setia Bhd, Eco World Development Group Bhd, Mah Sing Group Bhd, Sime Darby Property Bhd and Gamuda Land to offer homes in Kuala Lumpur and Selangor.
Soam said although its property division had always been its key sector, the construction sector has now catched up.
“As of September 2017, we see the construction sector contributing some 30 per cent to our profits, while property division is at some 16 per cent.
“That said, property is a very cyclical business and based very much on market demands, while our strategy towards construction is more on quality, rather than quantity. We are lucky to have clinched numerous projects that are of good quality and yields good return to our shareholders.”